Mercoledì, 19 Settembre 2018
ROME

Siena MPS bank closes third quarter with unexpected losses

English
© ANSA

Rome, November 14 - Italy's third-biggest bank,
Banca Monte dei Paschi di Siena (MPS), on Wednesday reported a
third-quarter loss blamed on higher provisions for bad loans.
The troubled Siena-based bank reported an unexpected net
loss of 47.4 million euros in the period ending September 30,
compared with a profit of 42.2 million euros during the same
period last year.
It explained the loss, saying that provisions for bad loans
more than offset the revenues it took in from a securities
buyback and a rebound in Italian government debt.
In the first nine months of the year, write-downs on bad
loans totalled 1.3 billion euros, a 56% jump from one year
earlier.
Paschi, the world's oldest active bank, increased its
loan-loss provisions to 461 million euros in the third quarter
from 269 million euros in the same period last year.
The bank also reported that its Tier 1 capital ratio, a key
measure of financial health, dropped to 11.4% on September 30
from 11.7% at the end of June.
Paschi is the only Italian bank - and one of only four
lenders in Europe - that has failed to meet tough new capital
requirements set by the European Banking Authority.
Paschi has been shedding assets, cutting costs, and
attempting to reduce risks as part of a three-year plan to
restore liquidity.
The bank reported that third-quarter revenues rose by an
annualized 5% to 1.38 billion euros in the third quarter as the
bank made a profit of 233 million euros from trading, an
improvement from losses of 4 million euros a year ago.
Last month, Moody's investment agency lowered Paschi's
rating to junk status, arguing the bank's "fragile asset
quality" made it highly reliant on European Central Bank
assistance.

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